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The Energy Act 2004 (Designation of Companies and Designated Date) Order 2005

S.I. 2005/884 · Made 22 March 2005

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

ATOMIC ENERGY AND RADIOACTIVE SUBSTANCES

Made 22nd March 2005

The Secretary of State, in exercise of the powers conferred upon her by sections 45 and 46 and Schedule 7 and Schedule 8f1 to the Energy Act 2004f2 hereby makes the following Order:

Annotations to the whole text

Footnotes

f1

Paragraph 13(8) of Schedule 8 refers to Schedule 7 which provides that a company is designated by an order made by the Secretary of State.

f2

2004 c. 20

Contents

  1. 1Citation, commencement and interpretation
  2. 2Designations of companies
  3. 3Designated date
  4. Signature
  5. Schedule 1Schedule 1
  6. Schedule 2Schedule 2
  7. Explanatory note

1Citation, commencement and interpretation

(1)

This Order may be cited as the Energy Act 2004 (Designation of Companies and Designated Date) Order 2005 and it shall come into force at one minute past midnight on 1 April 2005.

(2)

In this Order “the Act” means the Energy Act 2004;

2Designations of companies

(1)

For the purposes of Schedule 7 and Part 5 of Schedule 8 to the Act, each company listed in Schedule 1 is a designated BNFL company f1.

(2)

For the purposes of Schedule 7 to the Act only, each company listed in Schedule 2 is also a designated BNFL company.

3Designated date

For the purposes of Part 4 of Schedule 8 to the Act, the designated date is 1 April 2005.

Signature

Mike O'Brien

Minister of State for Energy and E-Commerce,

Department of Trade and Industry

22nd March 2005

Schedule 1

BNFL Companies designated for the purposes of Schedule 7 and Part 5 of Schedule 8 of the Energy Act 2004

NameCompany Number
PRECIS (2404) to be renamed as British Nuclear Fuels plc5027024
British Nuclear Group Limited5245506
Nexia Solutions Limited3857752
International Nuclear Fuels Limited1144352
Westinghouse Electric UK Limited2458109
Magnox Electric plc2264251
British Nuclear Group Project Services Limited5339062
Energy Sales and Trading Limited3857761
Deva Manufacturing Services Limited2763400
BIL Solutions Limited2888907
Springfields Fuels Limited3857770
Uranium Asset Management Limited3162046
Direct Rail Services Limited3020822

Schedule 2

BNFL Companies designated for the purposes of Schedule 7 only

Name
Westinghouse Electric Company LLC
Westinghouse Electric (Sweden) AB

Explanatory note

(This note is not part of the Order)

This Order designates companies which are publicly controlled companies to which either securities of the Nuclear Fuels Company (within the meaning of the Atomic Energy Authority Act 1971f1) (“BNFL”) or property or rights or liabilities of BNFL or a wholly owned subsidiary of BNFL have been transferred.

The designation of these companies is for several purposes. Schedule 7 to the Energy Act 2004 makes provision about the finances and accounts of certain companies to which property, rights or liabilities are transferred, whether in accordance with a nuclear transfer scheme or otherwise. A nuclear transfer scheme is a scheme providing for one or more transfers authorised by Chapter 2 of Part 1 of the Energy Act 2004. Paragraph 2 of Schedule 7 to the Energy Act 2004 gives the Secretary of State power (subject to paragraphs 5 and 6) to make loans to designated BNFL companies; paragraph 3 of Schedule 7 applies section 1 of the Nuclear Industry (Finance) Act 1977 (c. 7) to designated BNFL companies, thereby giving power to the Secretary of State to give guarantees in respect of the liabilities of such companies (subject to the limits of that Act, as modified by paragraph 5 of Schedule 7 to the Energy Act 2004).

Paragraph 5 of Schedule 7 extends the provisions of the Nuclear Industry (Finance) Act 1977 concerning guarantees to BNFL, and limits on possible government financial commitments to that company to cover designated BNFL companies.

Paragraph 6 of Schedule 7 sets out borrowing limits on transferee companies that have had property, rights or liabilities transferred to them in accordance with a nuclear transfer scheme, but are not designated BNFL companies. Designation for the purposes of the Schedule therefore excludes transferee companies from paragraph 5 and brings them within paragraph 6.

The remaining provisions of Schedule 7, which relate to temporary restrictions on borrowing of transferee companies and statutory accounts of transferee companies, and require Crown owned transferee companies to lay their accounts before Parliament, apply irrespective of whether or not the companies in question are designated BNFL companies.

The Order also designates companies for the purposes of Schedule 8, which concerns pensions. The United Kingdom Atomic Energy Authority (“UKAEA”) Pension Scheme was set up under paragraph 7(2) of the Atomic Energy Act 1954f2. The designation of these companies is to enable the Secretary of State to give a direction to the UKAEA to modify its pension scheme in respect the participation of employees and directors and other officers (who are not employees) of these companies, whilst companies are still puclicly controlled.

For the purposes of Part 4 of Schedule 8 of the Energy Act 2004, a person is entitled to pension protection if he is a public sector employee immediately before a date designated by the Secretary of State by Order. This Order designates that date as 1 April 2005.